Gold dips below Rs 20,000 after 3 months
New Delhi: Gold prices fell below Rs. 20,000 per 10 grams level for the first time in nearly three months in the bullion market on Friday due to brisk selling by stockists in line with a weak global trend.
The gold prices fell by Rs. 360 to Rs. 19,960 per 10 grams, a level last seen on November 4, while silver tumbled Rs. 950 to Rs. 41,700 per kg on fall in demand among jewellers at existing high levels.
Trading sentiments turned bearish after gold declined to the lowest level in four months in global markets, as recovering global economy eroded demand for haven investments.
Gold in global markets, which normally sets a price trend on the domestic front, fell by 0.4 per cent to $ 1,308.25 an ounce, the lowest level since October 1 and silver declined by 1.9 per cent to $ 26.40 an ounce.
Besides, retail customers refrained from purchasing gold at existing higher levels and wait for further falls also influenced the market sentiment.
On the domestic front, gold of 99.9 and 99.5 per cent purity tumbled by Rs. 360 each to Rs. 19,960 and Rs. 19,840 per ten grams respectively. Sovereign also shed Rs. 50 to Rs. 16,700 per piece of eight grams.
The silver ready plunged by Rs. 950 to Rs. 41,700 per kg and weekly-based delivery by Rs. 1000 to Rs. 41,490 per kg.
Silver coin lost Rs. 500 to Rs. 48,000 for buying and Rs. 48,100 for selling of 100 pieces.